logo |

News

    Home   >     Industry    >     Main body

    Australian Dollar Outlook: AUD/USD Eyes Westpac Consumer Confidence

    Abstract:AUSTRALIAN DOLLAR, AUD/USD, CONSUMER CONFIDENCE, COVID, CHINA - TALKING POINTS
    •   Australian Dollar looks to Westpac Consumer Confidence index

    •   Chinese economic data on tap this week as PBOC balances stimulus

    •   AUD/USD may retest former wedge support before moving lower

    headline_AUSTRALIAN_DOLLAR_2.jpg
    WEDNESDAYS ASIA-PACIFIC OUTLOOK

      Markets across the Asia Pacific region may trade higher on Wednesday following a solid performance from stocks on Wall Street during Tuesday trade. The Dow Jones Industrial Average (DJIA) rose to a record high. Darling technology stocks lagged. Instead, investors moved into industrial, energy, and materials stocks after the Senate passed a sweeping infrastructure package. The risk-sensitive Australian Dollar reflected the chipper mood.

      The Aussie Dollar will see its own specific event risk cross the wires today in the form of August‘s Westpac Consumer Confidence index. A drop in the reading from the month prior wouldn’t be surprising, given the widespread lockdowns across the country as policymakers attempt to contain the highly transmissible Delta Covid variant. New South Wales saw 356 locally-sourced cases on Tuesday, according to the state government.

      Surging cases and the resulting lockdowns have plunged the Aussie Dollar to new lows this year versus the US Dollar in recent months as traders priced in a slower rate of growth in Australia‘s economy. AUD/USD has dropped nearly 5% since June. That said, traders have already priced in an economic contraction. This may see the Australian Dollar appear somewhat resilient to further bad news in the short term. That is not to say prices can’t weaken further, but downside reactions may appear relatively mild to losses seen in June and July.

      Elsewhere in the Asia Pacific region, New Zealand will report third-quarter business inflation expectations. China is also expected to report new Yuan loans data for July sometimethis week, although no exact date is provided, so traders should keep their eyes peeled. Analysts expect CNY 1.2 trillion in new loans for last month, which would be down from CNY $2.12 trillion in June.

      If so, that will account for a slowdown in credit growth. The Peoples Bank of China (PBOC) has taken measures to put the brakes on stimulus in recent months, although growing Covid cases threaten that narrative. The Australian Dollar may see volatility if the upcoming Chinese data surprises markets, given the economic link between the two countries.

    AUD/USD TECHNICAL OUTLOOK:

      AUD/USD is tracking higher after breaking lower from a Rising Wedge pattern. Prices may return to the wedge‘s former support level to retest before resuming the downtrend. That is not untypical of these post-wedge moves. A break higher, however, may provide some bullish energy to extend the move. The most likely path forward remains to the downside as prices remain below the pattern’s limits.

    AUD/USD 8-HOUR CHART
    audusd
    DOWNLOAD

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United States Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of FX919 comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. FX919 doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. FX919 will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by FX919 are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the FX919 site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with FX919, the client should bear full responsibility for their consequences.